Exercise 5-3

The following transactions are for Wildhorse Company.

1.		On December 3, Wildhorse Company sold $545,300 of merchandise to Carla Vista Co., terms 3/10, n/30. The cost of the merchandise sold was $327,100.
2.		On December 8, Carla Vista Co. was granted an allowance of $25,100 for merchandise purchased on December 3.
3.		On December 13, Wildhorse Company received the balance due from Carla Vista Co.

(a) Prepare the journal entries to record these transactions on the books of Wildhorse Company. Wildhorse Company uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(b) Assume that Wildhorse Company received the balance due from Carla Vista Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)